In a recent Q&A video published to YouTube, the billionaire technology investor Mark Cuban made some crypto-skeptic comments. Perhaps most notably, Cuban said that he would prefer to own bananas than own Bitcoin.
Mark Cuban criticizes Bitcoin for lacking ”intrinsic value”
This video was published by the well-known technology news outlet Wired. Furthermore, the video saw Cuban answer a Twitter user’s query regarding crypto.
Specifically, the Twitter user wanted to know why Cuban is so skeptic towards crypto, seeing as he claims to be ”into providing opportunity for people to grow their net worth”. This comes as Cuban has long held a disregard for both Bitcoin and crypto in general.
In response to the Twitter user’s question, Cuban had an extensive answer. Firstly, Cuban began by mentioning that he has an issue with the price of Bitcoin. Moreover, Cuban explained that he is skeptical about how the market demand is a major driver for the price of Bitcoin. Concisely, Cuban put it like this:
”Here’s the thing about crypto, particularly Bitcoin: Bitcoin is worth what somebody will pay for it.”
In addition to this, Cuban then went on to note how Bitcoin has ”no intrinsic value”. Furthermore, he went on to compare Bitcoin assets to that of owning ”baseball cards”, ”comic books” and artwork:
”Did you ever see someone who collected baseball cards? And they were really, really, really proud of their baseball cards because they kept saying they were going to go up in price? Comic books — same thing, even artwork. There’s no real intrinsic value, you can’t eat a baseball card […] Your artwork might look good on the wall but not much you can do with it. Bitcoin — there’s even less you can do with it: at least I can look at my baseball card […] I can look at artwork.”
One should, however, note that this criticism is not entirely grounded. Rather, fiat currencies can similarly be said to lack an ”intrinsic value”. After all, although one cannot eat a baseball card or a Bitcoin, it would nonetheless be equally hard to eat a US dollar.
Bananas over Bitcoin?
Nevertheless, Cuban also went on to argue that Bitcoin is ”too complicated” for the average layman. As such, he said that Bitcoin requires a means of protecting the virtual assets.
Although such means of protection arguably already exist, Cuban’s comments regarding this do have a point. Easing the general use of Bitcoin, and cryptocurrency in general, is widely seen as key to general adoption.
Following this line of reasoning, Cuban went on to compare crypto to gold. Cuban stressed how gold also requires protection measures, and that he does not believe in this type of asset lacking ”intrinsic value”. Moreover, he said that he would instead ”rather have bananas” than crypto:
“I say it’s like gold. Gold is a religion: people who are really into gold — they’ll tell you that there’s a bad depression and things go to hell in a handbasket, if you own gold then you’ll be okay. No, you won’t! You carry around a gold bar — someone’s gonna hit your ass, knock you out and steal your gold bar and it’s gonna happen again and again and again. I’d rather have bananas, I can eat bananas. Crypto… Not so much.”
Image Source: Forbes
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.